Ben and Alex Turner chose to buy an investment property rather than their first home. Pictured in front of their Bondi Junction investment apartment.Source: News Limited

FIRST home buyers are back in the market and looking to buy, according to mortgage industry figures.

RAMS Home Loans reports that of more than 20,000 home loan inquiries made during the past 12 months nationally, 63.8 per cent identified as first home buyers.

These numbers are increasing, with last quarter's proportion being 65.3 per cent, up from 60.8 per cent two quarters earlier.

In NSW, the 12 month proportion of first home buyers is 62.7 per cent. The most recent quarter rose to 63.8 per cent, from 59.7 per cent two quarters earlier.

"There has been a lot of commentary around the lack of first home buyers in the market recently, but we are still finding a strong presence," said Chris Thornton, RAMS head of marketing.

Mr Thornton said an increasing number are buying investment properties as a first home, which would account for the rising percentage of investors being recorded in the market.

"They buy the investment property to get on the ladder, build equity and either move in or buy another home later on," Mr Thornton said.

A recent Mortgage Choice survey found that 40 per cent of gen Y Australians planning to buy an investment property in the next two years were first time buyers.

"First homeowners these days are far more discerning in terms of financial literacy, goals and wealth creation," said Michael Russell, Mortgage Choice CEO. "The growing percentage buying an investment property as a first home can explain why first homebuyer numbers are thought to be declining."

Mr Russell said first home investors are usually one of two types.

"Some buy where they want to live in the future, then work very hard to pay down as much of the mortgage as possible, before moving in," he said. "Others are the very shrewd types that buy for wealth creation, anywhere in the country as long as the numbers are worth it."

Married public servants Ben Turner and Alex Kiel have just settled on an investment property in Bondi Junction, which they purchased for $681,000. They plan to lease it out while they continue renting a one-bedroom apartment nearby.

"The most difficult part was getting a deposit together, it has taken us years," Mr Turner said. "We have been looking for a property for two years but have only been in a position to buy for a few months."

The couple were not eligible for any government benefits, but were not concerned. They also wanted to stay on the east side, to be close to work and family.

"The FHOG used to be awesome when it was free stamp duty and a $14,000 grant," Mr Turner said. "Now you need to come up with stamp duty fees and bank fees on top of the deposit upfront. You have to have a lot of money ready before you even start looking."

News.com.au's Privacy Policy includes important information about our collection, use and disclosure of your personal information (including to provide you with targeted content and advertising based on your online activities). It explains that if you do not provide us with information we have requested from you, we may not be able to provide you with the goods and services you require. It also explains how you can access or seek correction of your personal information, how you can complain about a breach of the Australian Privacy Principles and how we will deal with a complaint of that nature.

A NOTE ABOUT RELEVANT ADVERTISING: We collect information about the content (including ads) you use across this site and use it to make both advertising and content more relevant to you on our network and other sites.